Swiss Investments In India Update: The investment of big Swiss companies in India is increasing and in the coming days this investment figure may touch 100 billion dollars. Earlier, Swiss companies were inclined towards China. In the month of March, Trade and Economic Partnership (TEPA) was signed with the European Free Trade Association. The largest member country of the European Free Trade Association is Switzerland. Once this deal is approved, there could be a flood of Swiss investments in India.
keeping an eye on the Indian market
After the implementation of the regional trade deal, Swiss companies like engineering company ABB and transport firm Kuehne+Nagel can invest up to $100 billion in India. Swiss investment will get a boost once the deal with the European Free Trade Association is approved. Other member countries of the European Free Trade Association are Norway, Iceland and Liechtenstein. The companies of these countries are eyeing the big market of the country with a population of 140 crores, where they will get help in selling their goods. European businessmen feel that the pace of development of China’s economy has slowed down compared to India. These companies can get big benefits from India’s strong economic growth. At the same time, exports of pharmaceuticals, clothes and machinery from India will get a boost.
10 lakh jobs will be created
Due to TEPA (Trade and Economic Partnership), the tariff on 94.7 percent of exports will be reduced from 22 percent to zero, which will benefit Swiss companies more than the companies of Britain and other countries of the European Union. Investment of 100 billion dollars in 15 years by European Free Trade Association based companies will create 10 lakh employment opportunities in India and in return India has promised to create a better environment for these companies to invest.
ABB increasing presence
According to Reuters report, ABB CEO Morten Wierod said, India is developing rapidly. He said, in the last three years the average order size of the company has increased at the rate of 27 percent. To meet the demand, ABB is preparing factories, offices and showrooms in India. 8 projects have been completed by 2023 and after 2020, the company has increased its workforce from 6000 to 10000. ABB CEO said, India is the company’s fifth largest market and is on its way to becoming the third largest market after America and China.
Efforts to increase Swiss exports
At present, Swiss exports to India are very less. In the year 2023, only 1.5 percent of the total mechanical and electrical exports of Swiss companies were exported to India, although its share has increased by 8 percent. Kuehne+Nagel is continuously expanding in India. Its workforce has increased from 2850 to 4800 in 2019. The company is opening its centers in Chennai, Gurugram, Kolkata. Anish Jha, MD of the company in India, said, due to government schemes like National Logistics Plan, investment in roads, rail and ports has increased which is giving huge benefits.
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